NGX Declines as Selloffs Hit BUA, Stanbic IBTC
The equities segment of the Nigerian Exchange, NGX, experienced a bear-bull fight that plunged market valuation downward following specific selloffs on some companies’ shares.
The negative price movement of large and mid-cap stocks like BUA Cement Plc which declined by 1.6% and 5.8% price down in STANBIC IBTC market valuation, thus undermining the market’s performance.
Consequently, the key performance indicator or the Nigerian Exchange All share index declined 0.08% week on week to 54,892.53 points due to profit-taking in some defensive stocks with strong fundamentals.
Data from the exchange showed that the market capitalization declined by N23.24 billion week on week to N29.90 trillion. Investors’ decision to take profit dragged year-to-date return to 7.11% from 8.87% in the previous week.
At the close of the week, the level of market trading activities was positive as the total number of deals decreased by 24.40% week on week to 14,019. Stockbrokers said they recorded a 97.85% surge in traded volumes for the week to 1.69 billion units valued at N11.07 billion, indicating a massive rise of 607.15% week on week.
The top-gaining securities for the week were NPFMCRBK (+7%), GEREGU (+6%), and TRANSCOHOT (+6%), while the week’s losers were UCAP (-17%), LINKASSURE (-11%), and ETI (-10%).
MANSARD (-4.5%), WAPIC (-4.8%), and BUACEMENT (-1.6%). Conversely, gains in ZENITH (+1.4%), FBNH (+1.9%) and JAIZBANK (+2.2%) supported a 0.9% week-on-week uptick in the Banking index.
Investor sentiment, measured by market breadth, improved to 0.0x from -0.3x in the prior week, as 28 stocks gained, 26 lost while 98 closed flat.
SUNUASSU gained 9.1%, LASACO popped up by 7.1%, and NPFMCRFB was 6.9% above its opening market price, thus leading the top gainers’ chart. On the decline side, NCR lost big, down by 18.7% followed closely by IKEJAHOT 18.3% price down. INTBREW dropped by 6.5%.
Also, sector performances were mixed, as the Consumer Goods (-0.7%), Industrial Goods (-0.5%), and Insurance (-0.5%) indices declined while the Banking (+0.9%) index advanced. The Oil and Gas index closed flat.